What is the ruling on selling and buying trademark rights—a company's license—to produce its products by other companies, and what is the evidence and what are the controls regarding this and regarding price determination?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The Islamic Fiqh Academy issued a resolution stating that names, addresses, trademarks, authorship, inventions, and innovations are private financial rights belonging to their owners, and it is permissible to dispose of them.
Accordingly, it is permissible for a company to sell its trade name to another company, provided that what is sold is permissible (), the price is known, there is no deception, and the product is of the same quality as the parent company.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/67777
Where this answer came from
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- Ftawy
- Original fatwa ID
- 67777
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy